KARACHI: The Pakistan Bureau of Statistics (PBS) reports an 850% surge in gas prices over the past four months, driven by IMF-backed reforms. Similarly, electricity tariffs rose by 35% in November, with a further 75% increase expected by February 2024. These utility hikes have significantly contributed to the inflation that has strained households and businesses.
Amid these challenges, Prime Minister Shehbaz Sharif noted a slight reprieve, as weekly inflation dropped to 3.57% year-on-year, according to the Sensitive Price Index (SPI). However, essential commodity prices, including potatoes and edible oil, continue to climb.
The Asian Development Bank (ADB) has stepped in, approving a USD 200 million loan to modernize Pakistan’s outdated power distribution systems. The project aims to reduce energy losses and improve reliability, focusing on regions served by LESCO, MEPCO, and SEPCO. This initiative is expected to bolster the sustainability of the nation’s energy sector amidst ongoing economic turbulence.
